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A toxic mixture of politics and greed

Limpopo ANC has developed a culture of eating & drinking on behalf of the masses

RENOWNED radio talk-show host and political commentator Thabiso Kotane likes the Afrikaans expression: "Wat gaan aan?" (What's going on?).

Most people are already wondering: "What is actually going on with these reports of financial mismanagement in the Limpopo government?"

Between October and November last year media reports said the province was experiencing a financial crisis. The provincial government was quick to dispel and dismiss such reports and rumours as "contemptuous hogwash".

In November Finance Minister Pravin Gordhan informed cabinet that Limpopo had approached the National Treasury for an urgent financial bailout of R1-billion.

A special sitting of cabinet was subsequently convened in December to discuss the state of finances of Limpopo, Free State and Gauteng provinces.

A decision was taken to place five departments in Limpopo, two in Free State and one in Gauteng under national administration as per Section 100 of the Constitution.

History and experience have taught us that it is exceptionally hard to separate party politics from government.

Limpopo premier Cassel Mathale is a self-confessed rich businessman and also the provincial chairman of the ANC. He is also a close political ally and business associate of former ANC Youth League boss Julius Malema.

It was highly expected that Mathale's supporters and allies would rebel against the cabinet's decision. The provincial youth league leaders were unrelenting and scathing in their criticism of that decision and its timing.

They were quick to cast political aspersions and innuendos on cabinet members, particularly Gordhan.

Is it true that cabinet's decision was influenced by party political interests or considerations?

The placing of Limpopo under administration was necessary and unavoidable. There are some underlying substantive factors which inform this conclusion.

In March last year Limpopo received its annual financial budget of more than R43-billion from the National Treasury. Above that, the province also received a guaranteed "overdraft facility" of R757,3-million.

The financial year of government commences on April 1 and ends on March 31 the following year.

This simply implies that Limpopo "managed" to empty its financial purse five months before the end of the financial year.

The provincial government's financial troubles got so bad that it was discovered that it would not be able to pay wages.

There are some unscrupulous politicians deployed in government who, together with their friends and family members, "eat and squander taxpayers' money" with absolute impunity.

And when asked why they steal from the poor, these dubious politicians shamelessly reason that "we did not participate in the liberation struggle to become poor".

It is this kind of backward attitude which has corrupted the souls and minds of most politicians in the ruling party. Unfortunately, this attitude got worse in Limpopo.

The systemic design of Mathale's government allowed possibilities for a network of politicians and business people to "eat and drink on behalf of the masses".

A small clique of associated comrades, friends and family members benefited immensely from the provincial government's multi-million-rand tenders. In contempt of the "revolutionary morality" they always claim to represent, these tenderpreneurs managed to appropriate/reserve unto themselves the right to "eat and drink on behalf of the masses".

Reported incidents of maladministration, unauthorised expenditure, tender-rigging and financial mismanagement prevailed unabated in Limpopo.

If Limpopo was a commercial entity, it could have been declared insolvent and consequently liquidated in terms of the prescripts of corporate law. Insolvency refers to a situation whereby a company's liabilities (debts) far exceed its accumulated assets.

How did the peaceful province of Limpopo become cash-strapped? One of the most illustrious and critically honest documents of the ANC, Through the eye of a needle, observed: "Because leadership in structures of the ANC affords opportunities to assume positions of authority in government, some individuals then compete for ANC leadership positions in order to get into government.

"Many such members view positions in government as a source of material riches for themselves.

"As such, some members make promises to friends that once elected and ensconced in government, they would return the favour. Cliques and factions then emerge within the movement (ANC) around personal loyalties driven by corrupt intensions." That is exactly what transpired in Limpopo.

The province's fiscal crisis was largely caused by a toxic mixture of politics, business and greed.

The roots of Limpopo's financial crisis could be traced back to the 2008 Mangaung conference of the youth league which elected Malema president.

Immediately after his election, Juju used his newly acquired political power to secure Mathale's election as Limpopo ANC chairman in 2008 and premier the following year.

Legend has it that it was Juju who personally went to Zuma and convinced him to appoint Mathale as premier.

It was these definitive political developments which paved the way for Malema to entrench his hegemonic influence and control within Mathale's government.

Most commentators believe, rightly or wrongly, that once Mathale had taken over, it was payback time.

There is an ancient Anglo-Saxon caution that says "you scratch my back and I will scratch yours".

  • Masoga is a researcher with the Institute for Dialogue and Policy Analysis

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